Charles Schwab is set to introduce a new offering in the prediction markets sector, allowing users to place wagers on the performance of the S&P 500. This initiative will feature yes-or-no bets regarding whether the index will close above or below a specified target price. The launch is anticipated within the next few months and will occur through a partnership with Cboe Global Markets.
This move follows Schwab's recent expansion into digital assets, having initiated spot trading for Bitcoin and Ether in May. In the first quarter of 2026, the company reported a net income of $2.5 billion. As the prediction market expands, it faces scrutiny from lawmakers concerned about public officials potentially profiting from nonpublic information.
Current platforms like Kalshi and Polymarket already provide similar betting options on the S&P 500, but Schwab's offering will be more focused, limited to stock market predictions. The prediction market is projected to achieve an annual volume of $1 trillion by 2030, indicating significant growth in this sector.